Mr Haddon-Cave and the Textiles Advisory Board

even more difficult than they are already; we

might also be making greater difficulties for our-

selves when the time comes to negotiate with

Hong Kong on cotton textiles in conjunction with

our partners in the Community.

3. On the substance of the matter, I myself

cannot see any difficulty over the point made in

paragraph 2 of Hong Kong telegram No 72 (when

I discussed this briefly with Mr Ridley on the

telephone earlier this week he more or less agreed

that we could give this assurance).

Paragraph 3

of the telegram (up swing from Group II or Group

III to Group IV) is clearly more difficult, but

might hig

I would have thought we could for a compromise

between 4.6 million square yards and 10 million

square yards.

Clot

The point in paragraph ↳ will be

I suspect the most difficult of all for the DTI

to accept.

4. In pressing the DTI to consider moving a

little further towards the Hong Kong position

Mr Royle would, I think, have to base his case

quite simply on the fact that Hong Kong is a Crown

Colony.

5. Mr Royle may wish to write to Sir John Eden

on the lines of the attached draft.

7

have been agreed with Mr Hale.

Its terms

2.

NOTHING TO BE WRITTEN IN THIS MARGIN

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